The upcoming GST Council meeting on June 22 will address several critical issues, including an amnesty scheme for clearing up tax litigations, exemptions for foreign shipping lines and airlines, and pre-Budget discussions.
Despite the hopes of online gaming companies for a review of the 28% GST on their sector, sources indicate that the Council is unlikely to reduce this tax. However, clarifications regarding the tax on actionable claims in online gaming may be provided.
A significant agenda item is the proposed amnesty scheme aimed at resolving tax disputes. Businesses have been urging the GST Council to implement this scheme to alleviate the backlog of litigation arising from GST implementation. The Council might consider lowering the rate of pre-deposit of the tax to 7.5%.
The Council is also expected to clarify the GST treatment for foreign airlines and shipping lines. Many such entities have received tax notices from the Directorate General of GST Intelligence (DGGI), which has claimed that GST has not been paid on several imported services from parent offices by local entities.
Typically, the GST Council meets before the Union Budget to discuss states’ concerns and requirements. This meeting will also include pre-Budget discussions. However, a decision on rate rationalisation is unlikely as the Group of Ministers has not yet finalized its report on the matter.
